It is amazing how many people fail to adequately protect themselves by not purchasing insurance. Many people in an attempt to save money believe that insurance should only be purchased when required and only the minimum. A good example is home ownership. Most banks require a purchaser of a home to buy insurance to protect the property against fire or flood. Just as important, a homeowner’s policy can protect the home against lawsuits filed by third parties claiming injuries caused by the homeowner. Unfortunately, many property owners drop there coverage once the mortgage is paid and the bank is out of the picture. This is a very bad idea, one serious injury on your property could lead to the loss of your home. Another example is auto insurance. New York requires a minimum liability policy of $25,0000.00. To save money on premiums, many automobile owners purchase the minimum requirement. If you cause an accident and someone is seriously injured, the most your insurance company will pay is $25,0000.00. If you don’t have any assets(real estate) then you have nothing to lose, but if you own a home and the injured party has injuries that are worth over $25,000, you risk losing your home. The moral of the story, MAKE SURE YOU PURCHASE ENOUGH INSURANCE TO PROTECT YOUR ASSETS.
